Professional Indemnity FAQ

Excesses - Costs Exclusive or Cost Inclusive

What is the difference between a “Costs Exclusive” Excess or a “Costs Inclusive” Excess?

When we look at an excess described as Costs Exclusive, we are actually saying that the excess will only apply to the actual settlement of a claim as opposed to a costs inclusive excess which means the excess applies to both the legal costs and the settlement.

The end result should mean that the end result is the same, you pay the excess. Where there is a benefit with a costs exclusive excess is in the timing of when it gets paid (at the timing of settlement) and even better if the matter is successfully defended and there is no settlement. No excess is then paid.

So from this point of view, a “costs exclusive” excess is much better to have but is not always available for most occupations or with most insurers.

Its availability also has a lot to do with market cycles and competition. For instance, the Accounting profession is very competitive at the moment and will offer it, but hard to find for engineers. In a soft market it seems everyone offers a “costs exclusive” excess while in hard market it is a rarity.

A skilled Broker must point out at renewal time if the excess has reverted to “Costs Inclusive” or seek to negotiate with the current insurer its retention. Not pointing out this change will get the Broker into trouble.

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CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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Robert Cooper - Elite Broker again

We are pleased to announce that once again Insurance Business Magazine has recognised Robert Cooper amongst the top Elite Insurance Brokers in Australia. See here

It is the fourth time in six years Robert has received this honour.

It is a great recognition for CPR Insurance Services who strive to provide the best possible standard of customer care and service to assist obtaining the best possible cover at the best possible price to meet the needs of for our clients.

Such awards are not possible without the outstanding support provided in the office by Julia, Aidan and Mandy, along with the fantastic support our clients continue to show to us. Thank you to all.

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